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SC3 - SWOT Analysis

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Lim Sei Kee @ cK. SC3 - SWOT Analysis. SWOT analysis is a method for analyzing a business, its resources, and its environment. SWOT is commonly used as part of strategic planning and looks at:. Internal strengths Internal weaknesses Opportunities in the external environment

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swot is commonly used as part of strategic planning and looks at
SWOT is commonly used as part of strategic planning and looks at:
  • Internal strengths
  • Internal weaknesses
  • Opportunities in the external environment
  • Threats in the external environment
swot can help management in a business discover
SWOT can help management in a business discover:
  • What the business does better than the competition
  • What competitors do better than the business
  • Whether the business is making the most of the opportunities available
  • How a business should respond to changes in its external environment
the result of the analysis is a matrix of positive and negative factors for management to address
The result of the analysis is a matrix of positive and negative factors for management to address:
the key point to remember about swot is that
The key point to remember about SWOT is that:
  • Strengths and weaknesses
  • Are internal to the business
  • Relate to the present situation
  • Opportunities and threats
  • Are external to the business
  • Relate to changes in the environment which will impact the business
swot analysis strengths
SWOT Analysis - Strengths

Strengths are:

  • Things a business is good at
  • A characteristic giving a business an important capability
  • Sources of clear advantage over rivals
  • Distinctive competencies and resources that will help the business achieve its objectives
examples of potential business strengths
Examples of Potential Business Strengths
  • High market share
  • Achieving economies of scale
  • High quality
  • Leadership & management skills
  • Technological leadership
  • Brand reputation
  • Employee skills
  • High productivity
swot analysis weaknesses
SWOT Analysis - Weaknesses

Weaknesses are:

  • A source of competitive disadvantage
  • Things the business lacks or does poorly
  • Factors that place a business at a disadvantage
  • Issues that may hinder or constrain the business in achieving its objectives
examples of potential business weaknesses
Examples of Potential Business Weaknesses
  • Low market share
  • Outdated technology
  • Poor quality
  • Lack of innovation
  • Cash flow problems
  • Inadequate distribution
  • Low productivity
  • Skills shortages
swot analysis opportunities
SWOT Analysis - Opportunities
  • An opportunity is any feature of the external environment which creates positive potential for the business to achieve its objectives.
potential business opportunities
Potential Business Opportunities
  • Technological innovation
  • New demand
  • Market growth
  • Social or lifestyle change
  • Higher economic growth
  • Diversification opportunity
  • Deregulation of the market
swot analysis threats
SWOT Analysis - Threats
  • Threats are any external development that may hinder or prevent the business from achieving its objectives.
potential business threats
Potential Business Threats
  • New market entrants
  • Change in customer tastes or needs
  • Demographic change
  • New regulations
  • Economic downturn
  • Rise of low cost production abroad
  • Higher input prices
  • Competitive price pressure
using swot analysis
Using SWOT analysis
  • There is no point producing a SWOT analysis unless it is actioned!
  • SWOT analysis should be more than a list - it is an analytical technique to support strategic decisions
  • Strategy should be devised around strengths and opportunities
activity
Activity
  • Form a group of MAXIMUM 4 students.
  • Conduct self SWOT analysis.
  • Present it to the class after 30 - 45 mins discussion.
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